EFFICIENT USE AND CONSERVATION OF ENERGY – Vol. I - Efficient Use and Conservation of Energy in the Industrial
Sector - Clark Gellings, Kelly E. Parmenter and Patricia Hurtado
EFFICIENT USE AND CONSERVATION OF ENERGY IN THE
INDUSTRIAL SECTOR
Clark Gellings
Electric Power Research Institute, Palo Alto, California, USA
Kelly E. Parmenter and Patricia Hurtado
Global Energy Partners, Lafayette, California, USA
Keywords: energy consumption, conservation of energy, industry, electricity, fossil
fuels, energy efficiency, energy management, energy audits, energy-efficiency
opportunities
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Contents
1. Introduction
2. Energy Resources
2.1. Primary Resources
2.1.1. Fossil Fuels
2.1.2. Nuclear Fuel
2.1.3. Renewable Resources
2.2. Secondary Resources
2.2.1. Heat Recovery
2.2.2. On-Site Generation
2.2.3. Thermal Energy Storage
3. Industrial Energy Management Program
3.1. Energy Managers and Steering Committee
3.2. Historical Data
3.3. Energy Audit Methodology
3.4. Energy-Efficiency Opportunities
3.4.1. Energy-Efficient Building Operation
3.4.2. Energy-Efficient Process Operation
3.4.3. On-Site Generation Efficiency
3.4.4. Efficiency of Grounds
3.4.5. Plant Efficiency
3.5. Implementation
3.6. Monitoring
4. Progress in Industrial Energy Efficiency
4.1. Electricity Use
4.2. Fossil-Fuel Use
4.3. Specific Industrial Processes
Glossary
Bibliography
Biographical Sketches
Summary
©Encyclopedia of Life Support Systems(EOLSS)
EFFICIENT USE AND CONSERVATION OF ENERGY – Vol. I - Efficient Use and Conservation of Energy in the Industrial
Sector - Clark Gellings, Kelly E. Parmenter and Patricia Hurtado
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Industry is the largest energy-consuming sector of the world. As a result, significant
potential for energy efficiency and sustainability improvements exists. Considerable
advances have been made in energy efficiency since 1970; however, there is still room
for improvement. Current research and development are focused on sustainability
through improved efficiency, reduced energy use, increased utilization of renewable
resources, and maximized recovery of waste energy and materials. This topic addresses
the primary and secondary energy resources for industry and provides a generalized
approach to industrial energy management. In addition, industrial energy-efficiency
opportunities are highlighted within the industrial energy management section. Future
trends and progress toward increased industrial energy efficiency are also discussed for
the categories of electricity use, fossil-fuel use, and specific process application. This
topic serves as an introduction to the following four articles: Efficient Use of Electricity
in Process Operation, Efficient Use of Fossil Fuels in Process Operation, Energy
Efficiency in Specific Industrial Segments, and Total Plant Energy Efficiency.
1. Introduction
Energy is an essential part of life. Energy is not only vital for the survival of Earth and
its inhabitants, but it is vital for the economies of the world. Aside from energy use for
basic survival (i.e., food and shelter), energy is necessary to generate income for
industrialized countries. Up until about the middle of the twentieth century, energy in
the form of fossil fuels was readily available and inexpensive to obtain. As a result,
energy resources were exploited, and little regard was given to efficient energy
management. In the 1960s, concerns for resource depletion were beginning to increase.
Studies were done in an attempt to predict the actual quantities and locations of energy
resources. In the 1970s, the reality of limited resource availability hit hard. Two oil
embargoes resulted in extreme increases in energy costs. The cost of crude oil increased
by 10 times in less than a decade. Factors that contributed (and still contribute) to the
energy crisis include uneven distribution of oil and other energy resources, exponential
population growth, increased industrialization, and overall increased fuel consumption.
The lesson of the 1970s was that the rate of fossil fuel consumption had to decrease.
This can be accomplished on the user side or the supply side. The three main ways to
reduce fossil-fuel consumption on the user side are (a) increase energy management
efforts and decrease fuel consumption for a given quantity of output, (b) redesign
existing processes and switch to alternate fuel sources, and (c) reduce fuel consumption
by “sacrificing” or eliminating energy-intensive processes. Of the three options, the first
yields the fastest results without having to compromise much on the desired output. The
use of alternate fuels is also a viable approach, but it can require more capital
expenditure since many new technologies are still in the developmental stages.
Sacrificing is another approach that may be suitable in some circumstances, such as by
reducing light levels in areas that do not require high illumination; however, it is not
economically practical for the national economy to shut down all energy-intensive
processes. On the supply side, extracting harder-to-reach supplies and converting to
alternative fuels can alleviate fossil-fuel limitations. But, when compared to user-side
changes, supply-side changes take more time to have an impact. Energy management on
the user side can buy time for future development of efficient processes and fuel
substitutions. Efficient energy management on the user side is not only a very
©Encyclopedia of Life Support Systems(EOLSS)
EFFICIENT USE AND CONSERVATION OF ENERGY – Vol. I - Efficient Use and Conservation of Energy in the Industrial
Sector - Clark Gellings, Kelly E. Parmenter and Patricia Hurtado
responsible approach in terms of fuel conservation and reduced environmental impacts,
but it is also economically sound. Reduced fuel consumption results in reduced
operating costs, reduced pollution control costs, and increased industry competitiveness.
It also enables more independence from external energy supplies, and can thereby
release international tensions.
Industry is the largest consumer of energy resources worldwide. In fact, in the United
States, industry currently accounts for 37% of total energy consumption (see Figure 1).
The next largest energy consumer is the transportation sector, comprising 27% of total
consumption.
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The residential and commercial sectors of the United States make up the balance of
energy consumption, with 19% and 17% of total usage, respectively. In Japan, industry
has an even larger share of energy consumption. Figure 2 shows that 50% of Japan’s
energy is consumed by industry. The high percentage results from the high-energyintensive nature of Japan’s industries and from the relatively small size and favorable
climate conditions of the country.
The industrial sectors of Canada (Figure 3) and Germany (Figure 4) each comprise
about one-third of total energy consumption. Because of industry’s large share of
energy utilization, the development and implementation of industrial energy-efficiency
measures has a significant potential for global energy savings.
Industrial efficiency measures are aimed at increasing sustainability through reduced
energy use, increased recovery of waste energy and materials, improved thermodynamic
efficiencies, and increased utilization of renewable resources.
Figure 1. Total energy consumption by sector, 11-month total for 2000 (United States)
Source: Data compiled from Energy Information Administration (EIA), US Department
of Energy (US DOE), (2001), Monthly Energy Review, Table 2.4, available on-line at
www.eia.doe.gov/emeu/mer/
©Encyclopedia of Life Support Systems(EOLSS)
EFFICIENT USE AND CONSERVATION OF ENERGY – Vol. I - Efficient Use and Conservation of Energy in the Industrial
Sector - Clark Gellings, Kelly E. Parmenter and Patricia Hurtado
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Figure 2. Total energy consumption by sector, 1992 (Japan).
Source: Data compiled from International Energy Agency. (1994). Industrial Energy
Efficiency: Policies and Programmes, 335 pp. Paris, Organization for Economic
Cooperation and Development (OECD), International Energy Agency (IEA), pg. 25 and
Ministry of International Trade and Industry (MITI), Japan, 1992
Figure 3. Total energy consumption by sector, 1992 (Canada)
Source: Data compiled from International Energy Agency. (1994). Industrial Energy
Efficiency: Policies and Programmes, 335 pp. France: OECD/IEA, pg. 39
Figure 4. Total energy consumption by sector, 1990 (Germany)
Source: Data compiled from International Energy Agency. (1994). Industrial Energy
Efficiency: Policies and Programmes, 335 pp. France: OECD/IEA, pg. 181
©Encyclopedia of Life Support Systems(EOLSS)
EFFICIENT USE AND CONSERVATION OF ENERGY – Vol. I - Efficient Use and Conservation of Energy in the Industrial
Sector - Clark Gellings, Kelly E. Parmenter and Patricia Hurtado
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The industrial sector is comprised of a large variety of industries, such as the
agricultural, forestry, fishing, mining, construction, and manufacturing industries. The
quantity of energy consumed by specific industries within the sector ranges from
moderate to quite high. The manufacturing industries have particularly high energy-use
intensity. The industries of prevalence in each country vary with location. Each country
has its own unique industry distribution. For example, Figure 5 shows the total energy
consumption values by industry in the manufacturing subsector for the United States in
1998. The predominant energy consumers, in order of energy consumption, are (a) the
petroleum and coal industry, (b) the chemical industry, (c) the paper industry, (d) the
primary metals industry (including aluminum and stainless steel production), (e) the
food industry, and (f) the nonmetallic mineral products industry (including glass
production). Energy-efficiency opportunities for these six industries, with the exception
of the food industry, are discussed in the chapter Energy Efficiency in Specific Industrial
Segments. In Japan, the chemical industry and the iron and steel industry are the major
energy consumers (Figure 6). In Canada, the pulp and paper industry dominates energy
consumption (Figure 7).
Figure 5. Total energy consumption by manufacturing industry, 1998 (United States)
Source: Data compiled from EIA, 1998 Manufacturing Energy Consumption Survey,
Table N1.2
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EFFICIENT USE AND CONSERVATION OF ENERGY – Vol. I - Efficient Use and Conservation of Energy in the Industrial
Sector - Clark Gellings, Kelly E. Parmenter and Patricia Hurtado
Figure 6. Total energy consumption by manufacturing industry, 1991 (Japan)
Source: Data compiled from International Energy Agency. (1994). Industrial Energy
Efficiency: Policies and Programmes, 335 pp. France: OECD/IEA, pg. 27 and Energy
Balances in Japan, Institute of Energy Economics, Japan
Figure 7. Total energy consumption by industry, 1992 (Canada)
Source: Data compiled from International Energy Agency. (1994). Industrial Energy
Efficiency: Policies and Programmes, 335 pp. France: OECD/IEA, pg. 40
This topic addresses the efficient use and conservation of energy in the industrial sector.
It should be mentioned that it is not thermodynamically correct to state that energy is
“used” or “consumed” since energy is always conserved. Instead, it is more rigorously
correct to state that energy “quality” or “exergy” is consumed. Exergy is a measure of
the available work associated with an energy form. (See chapters under Efficient Use
and Conservation of Energy for a more thorough discussion of exergy.) Energy forms
with high quality, or exergy, include fossil fuels, electricity, and high-temperature and
©Encyclopedia of Life Support Systems(EOLSS)
EFFICIENT USE AND CONSERVATION OF ENERGY – Vol. I - Efficient Use and Conservation of Energy in the Industrial
Sector - Clark Gellings, Kelly E. Parmenter and Patricia Hurtado
high-pressure thermal energy. Waste heat is a low-quality energy form. In this text and
the articles that follow, the terms “energy use” and “energy consumption” are loosely
used and are meant to imply the conversion of energy to a lower quality form. Similarly
the terms “energy generation” and “energy production” imply the extraction,
refinement, and/or conversion of one form of energy to another more useful form.
Primary and secondary energy resources for industrial applications are discussed first in
Section 2.
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Primary energy resources consist of fossil fuels, nuclear fuels, and renewables. The
main fossil fuels of interest are coal, oil, and natural gas. Nuclear fuels include uranium
and thorium. Renewable resources arise from wind, wave, solar, wood, waste,
geothermal, and hydropower energy. Secondary resources are useful energy forms that
have been converted from primary sources. In the context of this discussion, they
include recovered heat, on-site generation, and thermal energy storage.
These secondary resources are also discussed in greater detail in Total Plant Energy
Efficiency. Section 3 describes the general procedures for establishing and maintaining
an industrial energy management program. In particular, discussions regarding the
organizational framework, historical data analysis, energy audits, and the evaluation,
implementation, and monitoring of energy-efficiency opportunities are provided.
Section 3 also includes extensive lists of energy-efficiency opportunities related to
buildings, processes, grounds, and total plant energy use.
Section 4 discusses the progress and current trends of industrial energy-efficiency
improvements. Energy-efficiency opportunities and trends for general and specific
process operations are also presented in greater detail in the following articles within
this topic: Efficient Use of Electricity in Process Operation, Efficient Use of Fossil
Fuels in Process Operation, and Energy Efficiency in Specific Industrial Segments.
2. Energy Resources
The energy resources of the planet may be categorized as primary energy resources and
secondary energy resources. Primary energy resources include fossil fuels, nuclear fuel,
and renewable resources. The three main types of fossil fuels are oil, coal, and natural
gas. There are also several other unconventional hydrocarbons (tar sands, oil shale, gas
entrapped in sandstone and shale, geopressurized methane, and gas hydrates).
However, the unconventional forms are expensive and difficult to extract. The principle
nuclear fuel used in reactors is uranium, although plutonium and thorium are also
fissionable fuels. Renewable resources include solar, wind, wave, geothermal, wood,
and waste-product energy, as well as the potential energy of dammed water
(hydropower).
Figure 8 shows a breakdown of primary energy consumption for the world in 1999.
Petroleum dominates worldwide consumption, comprising 40% of overall energy use.
Natural gas and coal comprise 23% and 22% of total usage, respectively. Nuclear and
hydropower each account for 7% of total consumption, and renewables represent the
remaining 1%.
©Encyclopedia of Life Support Systems(EOLSS)
EFFICIENT USE AND CONSERVATION OF ENERGY – Vol. I - Efficient Use and Conservation of Energy in the Industrial
Sector - Clark Gellings, Kelly E. Parmenter and Patricia Hurtado
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Figure 8. World consumption of primary energy by fuel type, 1999
Source: Data compiled from Energy Information Administration (EIA), US Department
of Energy (US DOE), (2001), International Energy Annual, Table 1.8, available on-line
at www.eia.doe.gov/iea/
A useful form of energy that arises from the conversion of a primary energy form is
called a secondary energy resource. For worldwide consumption, electricity is
considered a secondary energy source. Electricity is produced by the conversion of a
primary energy form (i.e., fossil fuels, nuclear fuel, or renewables) to electrical energy
with the use of generators, photovoltaic cells, and/or fuel cells. The majority of
worldwide electricity is generated by the combustion of fossil fuels. In fact, in 1998,
63% of net electricity generation resulted from fossil-fuel combustion.
The remaining electricity is produced with renewable energy sources, such as
hydroelectric power, solar energy, wind energy, wave energy, geothermal energy, or the
combustion of wood or waste products. For industrial applications, electricity that is
produced off-site and brought into the facility is considered a primary energy source for
the industry.
In contrast, electricity produced on-site by the facility is typically considered a
secondary energy. Section 2.1 discusses primary energy resources and their importance
to industrial applications. Secondary energy sources are also important for industrial
applications. Three of the main secondary sources arise from heat recovery, on-site
generation, and thermal energy storage. Secondary resources are discussed in Section
2.2.
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EFFICIENT USE AND CONSERVATION OF ENERGY – Vol. I - Efficient Use and Conservation of Energy in the Industrial
Sector - Clark Gellings, Kelly E. Parmenter and Patricia Hurtado
Bibliography
Beckmann G. and Gilli P.V. (1984). Thermal Energy Storage, 230 pp. Vienna, Austria: SpringerVerlag/Wein. [This book presents a thorough discussion of thermal energy storage.]
Chiogioji M.H. (1979). Industrial Energy Conservation, 603 pp. New York: Marcel Dekker. [This book
has useful information on process-specific efficiency measures.]
Dean N.L., Jr. (1981). Energy Efficiency in Industry, 444 pp. Cambridge, MA, USA: Ballinger Publishing
Company. [This is a valuable reference for general information on industrial energy efficiency.]
Goldstick R. and Thumann A. (1982). Principles of Waste Heat Recovery, 266 pp. Atlanta, GA, USA:
The Fairmont Press. [This is an excellent reference for information on waste heat recovery.]
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Gottschalk C.M. (1995). Industrial Energy Conservation, 121 pp. New York: John Wiley and Sons. [This
is a good source for information on energy management, financial considerations, and project
implementation.]
International Energy Agency. (1994). Industrial Energy Efficiency: Policies and Programmes, 335 pp.
Paris, France: Organization for Economic Cooperation and Development (OECD), International Energy
Agency (IEA). [This reference contains proceedings from the international conference in Washington,
DC in May 1994.]
Limaye D.R. (1987). Industrial Cogeneration Applications, 299 pp. Liburn, GA, USA: The Fairmont
Press. [This book presents a thorough discussion of cogeneration, with particular attention to its
application in industry.]
Reay D.A. (1977). Industrial Energy Conservation—A Handbook for Engineers and Managers, 358 pp.
Oxford, UK: Pergamon Press. [This book contains valuable general information on industrial energy
conservation.]
Smith C.B. (1981). Energy Management Principles, 495 pp. New York: Pergamon Press. [This is an
excellent reference for information establishing energy management programs.]
Smith C.B. (1997). Electrical power management in industry. CRC Handbook of Energy Efficiency (eds.
F. Kreith and R.E. West), pp. 641–668. New York: CRC Press. [This chapter presents a thorough
discussion of electrical efficiency in industry.]
Winer M.J. and Jackson M. (eds). (1991). Energy and Environmental Strategies for the 1990s, 636 pp.
Lilburn, GA, USA: The Fairmont Press. [This book is a compilation of papers presented at the 13th
World Energy Engineering Congress.]
Biographical Sketches
Clark Gellings' 30-year career in energy spans from hands-on wiring in factories and homes to the design
of lighting and energy systems to his invention of “demand-side management” (DSM). Mr. Gellings
coined the term DSM and developed the accompanying DSM framework, guidebooks, and models now in
use throughout the world. He provides leadership in EPRI, an organization that is second in the world
only to the U.S. Department of Energy (in dollars) in the development of energy-efficiency technologies.
Mr. Gellings has demonstrated a unique ability to understand what energy customers want and need and
then implement systems to develop and deliver a set of research and development programs to meet the
challenge. Among Mr. Gellings’ most significant accomplishments is his success in leading a team with
an outstanding track record in forging tailored collaborations—alliances among utilities, industry
associations, government agencies, and academia—to leverage research and development dollars for the
maximum benefit. Mr. Gellings has published 10 books and more than 400 articles, and has presented
papers at numerous conferences. Some of his many honors include seven awards in lighting design and
the Bernard Price Memorial Lecture Award of the South African Institute of Electrical Engineers. He has
been elected a fellow in the Institute of Electrical and Electronics Engineers and the Illuminating
©Encyclopedia of Life Support Systems(EOLSS)
EFFICIENT USE AND CONSERVATION OF ENERGY – Vol. I - Efficient Use and Conservation of Energy in the Industrial
Sector - Clark Gellings, Kelly E. Parmenter and Patricia Hurtado
Engineering Society of North America. He won the 1992 DSM Achiever of the Year Award of the
Association of Energy Engineers for having invented DSM. He has served as an advisor to the U.S.
Congress Office of Technical Assessment panel on energy efficiency, and currently serves as a member
of the Board of Directors for the California Institute for Energy Efficiency.
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Kelly E. Parmenter, PhD is a mechanical engineer with expertise in thermodynamics, heat transfer, fluid
mechanics, and advanced materials. She has 14 years of experience in the energy sector as an engineering
consultant. During that time, she has conducted energy audits and developed energy management
programs for industrial, commercial, and educational facilities in the United States and in England.
Recently, Dr. Parmenter has evaluated several new technologies for industrial applications, including
methods to control microbial contamination in metalworking fluids, and air pollution control
technologies. She also has 12 years of experience in the academic sector conducting experimental
research projects in a variety of areas, such as mechanical and thermal properties of novel insulation and
ablative materials, thermal contact resistance of pressed metal contacts, and drag reducing effects of
dilute polymer solutions in pipeflow. Dr. Parmenter’s areas of expertise include energy efficiency, project
management, research and analysis, heat transfer, and mechanical and thermal properties of materials.
Patricia Hurtado, P.E. is a mechanical engineer with a master's degree in thermal sciences and over 20
years experience in the energy sector. She has worked as an energy planner for more than 10 years,
conducting projects related to energy conservation, pollution reduction, building analysis, engineering
modeling, strategic planning, market evaluation, program development and performance assessment,
distribution and retail sector analysis, privatization evaluation in the electric utility sector, as well as
energy sector restructuring, rate design and analysis. Her consulting assignments have included clients in
the United States, Puerto Rico, Mexico, Colombia, and Thailand. Ms. Hurtado’s areas of expertise
include energy system design and analysis, engineering simulation models, end-use data and engineering
analysis, economic analysis, utility resource and strategic planning, forecasting, rate design and analysis,
distribution and retail sector analysis, and technology and market assessments of new products and
services.
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